Widening trade gap credit negative for India: Moody's
Global rating agency Moody's today warned that India's widening trade deficit is "credit negative" for the country and also raises its vulnerability to global shocks.
At present, Moody's has a 'Baa3' (lowest investment grade) rating for India with a stable outlook and any downward revision from here could pull the country's credit rating into junk grade.
The country's trade deficit in January stood at its second highest level, while the biggest ever gap of USD 21 billion was recorded in October, 2012.
India's trade deficits averaged about USD 13.5 billion a month in 2011 and USD 16 billion a month in 2012, up from an average of USD 9.5 billion a month between 2008 and 2010.
(Sources: Economic Times, Indiatimes, Business Standard, Indian Express, i4u, Daily Pioneer)
Economy to grow at 5.5% in current fiscal, says Montek
Economy would grow at a rate of between 5% and 5.5% in current fiscal and could expand by 7% in 2013-14, said plan panel deputy chairman Montek Singh Ahluwalia.
"It (GDP growth rate) would be somewhere between 5% and 5.5%. If everything worked perfectly, I would not rule out 7% next year (2013-14)", Ahluwalia said in an interview to PTI.
His comments came after the Central Statistical Organisation (CSO) has projected 5% economic growth this fiscal in its advance estimates released earlier this month.
Economic growth in 2011-12 slipped to 6.2% from 9.3% a year ago mainly on account of global factors and subdued investor sentiments.
Gross Domestic Production (GDP) of the country has grown by 5.5% in April-June quarter and further declined to 5.3% in July-September quarter.
(Sources: Economic Times, Indiatimes, Hindu Business Line, Hindustan Times, Financial Express)
NCR, Maharashtra got 50% of FDI in last 12 yrs
The National Capital Region and Maharashtra cornered over half of the total foreign direct investment inflows of USD 186.82 billion since April 2000, according to government data. Maharashtra attracted maximum foreign inflows at USD 61.23 billion, 33% of total FDI inflows during April 2000-November 2012, industry ministry data (DIPP) showed.
The National Capital Region (NCR), including parts of Uttar Pradesh and Haryana garnered USD 35.66 billion FDI during the period, which worked out to be 19% of the total flows.
Karnataka attracted the third highest FDI inflows worth USD 10.43 billion during the period, followed by Tamil Nadu (USD 9.72 billion), Gujarat (USD 8.53 billion), Andhra Pradesh (USD 7.58 billion) and West Bengal (USD 2.14 billion).
Foreign investors are mainly investing in sectors like services, telecommunication, metallurgical industries, power, computer hardware and software, and construction activities.
(Sources: India TV News, Hindustan Times, India Everyday, Hindu Business Line)
David Cameron pushes Mumbai-Bangalore development corridor
British Prime Minister David Cameron said on Monday he wanted his country's companies to help India develop new cities and districts along a 1,000 km (600 mile) corridor between Mumbai and Bangalore, generating investment projects worth up to $25 billion.
Kicking off a three-day visit to India with the largest trade delegation taken abroad by a British prime minister, Cameron said he wanted British firms to work with the Indian and British governments to develop nine districts to link Mumbai, India's financial capital, with Bangalore, its tech hub.
India has pushed the building of giant development "corridors" to accelerate the growth of its manufacturing base, which has lagged behind its IT and services industry.
The government has also planned to build 24 new industrial cities along a 1,483 km railway line between New Delhi and Mumbai with Japanese funding, but the project has progressed slowly.
(Sources: Financial Express, Times of India, Business World, India Everyday, Indiatimes)
Aviation industry to grow at 11% in medium term: ICRA
The domestic aviation industry is set to grow at 11% in the medium term as some of the cyclical variables become less spiteful, ratings agency ICRA said in a report. The industry witnessed a sub-10% compounded annual growth rate in the past five years, it said.
However, pressures in the near term remains, the report said, adding that the rising disposable incomes and the willingness to spend on air travel is likely to drive demand going forward.
The higher cost of travel and the impact of the economic slowdown have affected passenger traffic growth during the current year, which, over the past five years has grown at a CAGR of 9.2%, the report said.
(Sources: Zeenews, Livemint, India Info Line, Hindu Business Line, Hindustan Times, Financial Express)
Economic Section
Royal Thai Embassy